About

Broker Disputes

It’s common for broker disputes to arise during real estate purchase transactions. They tend to occur when there’s been a misunderstanding regarding a commission, or if the client believes the broker has acted in a negligent or fraudulent manner. With over a decade of experience representing individuals who are involved in broker disputes, our attorneys will work tirelessly to protect your rights and ensure a favorable outcome.

An overview of common broker disputes

Broker disputes can arise due to a number of issues and misunderstandings during a real estate transaction. For example, commission disagreements, defects affecting the property, fraud and negligence can all cause issues for the parties involved, including the broker, real estate agent, buyer and seller. Some of the most common issues handled by the Los Angeles attorneys at RA & Associates include:

Commission disputes

Commission disputes can arise during both residential and commercial real estate transactions. They occur when the two brokers involved in the sale, or the broker and the client, disagree regarding the commission.

Undisclosed defect claims

Sellers are required to disclose defects that can affect the property value or pose a risk to the new occupants. If these defects are not disclosed, a number of individuals can be held responsible, including the seller’s broker.

Breach of fiduciary duty

A real estate broker has a fiduciary duty to advise their clients about the real estate transaction. If they fail to fulfill this duty, either on purpose or due to negligence, the client may be entitled to file a claim against them.

Disputes between brokers and agents

During a real estate transaction, brokers and agents may form an oral or written agreement, for example regarding the commission on the sale. If the parties involved have different interpretations of the agreement, problems may ensue.

Fraud or intentional misrepresentation

If it is discovered that the broker intentionally misrepresented facts about the property or the transaction, it is considered fraud. When this occurs, the client may be able to recover compensation for any related damages.

Negligence

If the real estate broker acts in a negligent manner and accidentally misrepresents facts about the property, a dispute may occur. In these cases, the client may be entitled to file a claim for damages that have occurred as a direct result of the broker’s negligence.

Breach of contract

If the broker violates the terms of the brokerage agreement, he or she is considered in breach of contract and may be held liable for any resulting damages.

How to prevent a broker dispute

In an ideal world, broker disputes are prevented before problems arise, saving all parties involved a considerable amount of time and money. As such, we advise anyone involved in a real estate transaction to retain an attorney who can anticipate potential problems and assist with negotiating, preparing and drafting brokerage contracts, including listing agreements. An experienced real estate attorney who is involved from the beginning can prevent a broker dispute and ensure that all parties involved in the transaction are on the same page.

The process of resolving a broker dispute

Once a broker dispute has occurred, you’ll need to retain legal counsel to resolve the issue in mediation, arbitration or litigation. Fortunately, most disputes of this nature can be addressed through mediation or arbitration, saving you the time and expenses associated with litigation. After reviewing the facts associated with the dispute, an experienced Los Angeles real estate attorney can counsel you on the best course of action for your specific case.

Contact our office today

With over a decade of experience in real estate litigation, the attorneys at RA & Associates have successfully resolved countless cases for our clients. For help with your legal issue, contact our Los Angeles office today for a preliminary analysis of your case.